Death Of The Dollar Watch: Pakistan Preemptively Ditches The U.S. Dollar For The Chinese Yuan

The entire world is quickly not wanting anything to do with the U.S. military empire, or the dollar, and in this latest example, this time it’s different

First, President Trump fired off this tweet on New Year’s Day:

Then the next day, the President singles out the Palestinians (but informs anybody who missed the prior day’s Tweet that Pakistan is on the hot seat):

The word making the rounds in the MSM is that President Trump will cut off or restrict U.S. aid to Pakistan.

According to multiple news agencies, an announcement is expected today.

Not waiting for specific announcements or actions from the U.S., Pakistan is taking matters into their own hands in what can only be summed up as “ditching the dollar for the Chinese Yuan”.

Here’s MSM outlet CNBC:

  • A day after President Donald Trump slammed Pakistan on Twitter, the South Asian nation announced it will replace the dollar with yuan for bilateral trade with Beijing

  • As U.S.-Pakistan relations grow increasingly strained, China has been pursuing closer links with the country

We have been following the pivot away from the U.S. dollar from sometime, but this time, it is possible to say “this time it’s different”.

Yes, we get it, such a garbage cliche, but we’re not talking about the stock market bubble or the Bitcoin bubble here, we’ere talking about a nation that actually possesses nuclear weapons.

Last year we saw pivots from the usual, sanctions laden nations  such as Iran, North Korea and Venezuala, but this time, the move has been in advance of any adverse action that U.S. foreign policy might take against Pakistan.

In addition, Pakistan is a member of the United Nations and a NATO “partner across the globe”.

So again, we’re not talking about some rogue nation but a a nation with a nuclear arsenal and, generally speaking, a global player, albeit of limited pull and weight in the world.

Nonetheless, Pakistan just hammered another nail into the coffin of the U.S. dollar.

Here’s more from CNBC:

A day after the U.S. leader slammed Islamabad for harboring terrorists in a New Year’s Day tweet, Pakistan’s central bank announced that it will be replacing the dollar with the yuan for bilateral trade and investment with Beijing.

The same day, Chinese Foreign Ministry spokesman Geng Shuang defended Islamabad’s counter-terrorism track record, saying the country “made great efforts and sacrifices for combating terrorism” and urged the international community to “fully recognize this.”

China has been watching closely as U.S.-Pakistan relations become increasingly strained. Trump has long demanded the frontier economy to do more on counter-terrorism while he simultaneously grew closer to its arch-rival, India.

“Pakistan and the U.S. have had a fraught relationship for years, but the big change recently has been China,” said Simon Baptist, Asia regional director at the Economist Intelligence Unit. “China has really gone hard in cementing its existing relationship with Pakistan, it’s really the only place that’s seen significant investment under the Belt and Road initiative and China has been pushing for geopolitical advantage there.”

Islamabad is home to one of Beijing’s central infrastructure schemes, a near $60 billion collection of land and sea projects known as the China-Pakistan Economic Corridor — a centerpiece of Belt and Road.

So it is different this time.

We are not talking about nations that are on the United State’s “let’s go to war with bucket list” or Venezuela, which the possibility of military action last year wasn’t entirely ruled out anyway by President Trump himself, who actually said the U.S. has “not ruled out military action”.

We are talking about a key player in regional geo-politics, which also happens to be a major player in China’s Belt and Road Initiative.

And they are turning their back on the dollar.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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